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# Island turns ecosystem into financial asset

![](https://static.time.com/v3/assets/bltea6093859af6183b/blt2a465dbebbf18ed7/6a3b8d9d0198f8ce52825ec4/4._Island_turns_ecosystem_into_financial_asset.jpg?branch=production&width=3840&quality=75&auto=webp&crop=4:5)

_Lingshan Island sits some 6 miles off the coast of Qingdao, Shandong province. PROVIDED TO CHINA DAILY_

By ZHAO RUIXUE and HU QING 

China’s first independently certified carbon-negative island is continuing to demonstrate positive economic returns, providing a profitable, eco-friendly model throughout the country.

Lingshan Island, located about 6 miles off the coast of Shandong province’s Qingdao West Coast New Area in the Yellow Sea, recorded 706 million yuan ($97.3 million) in gross ecosystem product in 2024, a 14.3% year-on-year increase, marking three consecutive years of growth, according to Jinan Engineering Consulting Institute.

Gross ecosystem product is the total financial value that nature contributes to the economy.

The 3-square-mile island, home to 900 people, was certified by the China Quality Certification Centre as China’s first “carbon-negative island” on Dec 31, 2021.

According to the certification, in 2020, the island generated 6,248 short tons of carbon dioxide equivalent from energy use, agriculture and waste treatment, while its forests absorbed 7,717 short tons. This resulted in net emissions of negative 1,469 short tons.

This milestone was the result of years of sustained effort, with the island undergoing a steady green transition that has reshaped both daily life and economic development.

Lingshan Island has carried out farmland-to-forest conversion since the 1980s. This long-standing commitment dovetails with China’s dual carbon goals of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060\. The island has also taken part in pilot programs exploring how to balance economic development with environmental protection through carbon accounting.

Data from the Lingshan Island Provincial Nature Reserve Management Committee shows that more than 576 acres of farmland have been converted back into forest, and over 2,000 free-roaming goats have been relocated to allow vegetation to recover.

The entire island and surrounding area were classified as a nature reserve in 2002, spanning 12.6 square miles. 

According to the reserve’s management committee, a large-scale restoration program, backed by an investment of 515 million yuan, has introduced measures ranging from shoreline protection and slope stabilization to oyster reef restoration and pollution control. More than 200,000 trees have been planted, 40 acres restored and 37 acres of oyster reefs rebuilt, alongside eco-friendly coastal upgrades and walking trails.

Technology is also playing a growing role in ecological management. The “Smart Lingshan Island” platform integrates big data, drones, satellite imagery and artificial intelligence to enable round-the-clock monitoring of the island’s ecosystem.

In addition, a clean heating program has replaced coal with electricity in 455 households, reducing pollution and improving living conditions.

Teng Yanfang, who lives on the island, said old coal stoves were a safety hazard. “With electric heating, our homes are warmer, cleaner and more comfortable.” 

Outdated and unregistered vehicles have also been phased out, replaced in part by new-energy vehicles, helping build a greener transport system.

The conservation efforts have yielded effective results. Today, more than 80% of the island is covered in forest, and the surrounding waters remain clean and free of industrial pollution, the management committee said.

As tourism has grown, the livelihoods of the residents have gradually diversified. Tourists come not only to enjoy home-cooked meals — largely seafood — but also to stay overnight or longer. In response, some families have opened guesthouses or invested in sightseeing vehicles to cater to the growing demand.

Chen Yiwen, 28, represents a younger generation embracing these changes. Six years ago, she returned to the island and renovated her family home into a homestay.

“We’ve turned old houses into stylish guesthouses so that every visitor wakes up to the sea breeze and a view of the ocean,” she said, adding that this youthful approach aims to show Lingshan Island as more than a scenic getaway.

Fifty-three homestays have been developed, supported by a local industry association that helps revitalize idle rural homes and older properties.

Three regular ferry lines connect the island to the mainland, each providing a single round-trip service daily, weather permitting. Additional sailings are added during the peak travel season.

In October 2024, Lingshan Island completed Qingdao’s first carbon footprint assessment for a marine product — dried sea cucumber — produced by a local company. The result was 4.55 short tons of carbon dioxide equivalent per ton of dried sea cucumber, earning the product a carbon label that helped boost sales by 40% year-on-year, according to the company’s chairman Sun Jiguang.

“Sea cucumbers are highly sensitive to their environment,” Sun said. “Water quality, temperature, food supply and tidal conditions all affect their growth. The waters around Lingshan Island are ideal.”

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